Group Sipps will be permitted for use as qualifying schemes for automatic enrolment, the DWP has confirmed. But the the group Sipp must have a default fund that “resembles that of a group personal pension”, “be priced at levels comparable to those found in a typical GPP”, and comply with good practice guidance on desgnating default funds. Automatic enrolment into self-invested option is not permitted, and members should not have to pay for features that they do not use.
John Lawson, Head of Pensions Policy at Standard Life said, “This is a sensible conclusion. Group SIPPs are now a mainstream form of group pension scheme and are used by some of the largest employers in the UK. In practice, for most members, these operate just like group personal pensions and, in many cases offer lower charges that some GPPs.”
Group Sipps need default and low charges to meet 2012 standard
